Being paid the same day rent goes out?

nikotime

Hi all,
Just had a quick question about standing orders going out and rent coming in. My partner and I live together and the rent comes out of my bank account, with a standing order leaving my account for the full amount to the landlord. We've just moved and my partner gets paid on the 19th of every month, the same day as rent is due. Is it okay to set up a standing order from her account to mine on the 19th or is there a danger of her going into her overdraft and consequently being fined if the standing order goes out before her wages goes in?

Sorry if that doesn't make any sense/is a stupid question.

HappyMJ

No question is stupid...don't worry about that.

It's too close. The money will attempt to come out at 2am and the money may not come in until later in the day. The bank may automatically retry later but then again it may not. I would always leave 3 days between the money coming in and the money going out.

If you can I'd always pay the rent 3 days late with the landlords approval and hopefully in a years time you can save up an extra month of rent to always pay in advance.

pqrdef

nikotime wrote: »

or is there a danger of her going into her overdraft and consequently being fined if the standing order goes out before her wages goes in?

If you've got an arranged overdraft, you don't get "fined" for using it. If the overdraft covers the payment, the payment will be made, and I don't know any bank that charges if the money goes in a bit later.

Much trickier if you're going into unarranged overdraft territory, though with some banks you could get away with it now.

Biggles

Since you clearly have a choice, I would always make the transfer a couple of days before the rent payment, to cope with weekends, bank hols, bank delays etc.

Archi_Bald

May be the Nationwide FlexDirect could help the OP to save up a month's rent over the next 12 months?

The deal is a 12 month interest free overdraft facility - though it isn't guaranteed that they will actually give you as much as you would like to have.

SPANIEL36

I have a standing order going out for a loan on the same day my wages get paid into my account. Wages in- loan out same day, no problems at all and that been happening for past 3 years without a hitch

Tiglath

I always leave a minimum of 2 days between payday and the first direct debit. I'm paid on the 25th and most DDs come out 27th - 1st; it's not unheard of for them to be started 2-3 days prior though so there needs to be a buffer zone in my case.

nikotime

Thanks guys for your help and advice. Have checked and she has an arranged overdraft so all should be fine as the overdraft is greater than the rent. Can cover most months the rent without wages but house moves are costly times, especially when one upsizes!

Fishingtime

pqrdef wrote: »

If you've got an arranged overdraft, you don't get "fined" for using it.

You do with the Halifax
They charge you £1 a day for going into your overdraft

JuicyJesus

Fishingtime wrote: »

You do with the Halifax
They charge you £1 a day for going into your overdraft

That's not really a fine, it's just what they charge for their overdrafts.

Still extortionate compared to virtually every other bank, mind you.

Fishingtime

While it is not a fine as such
It is still a financial punishment